1. On the isle of Jaques, there is a museum dedicated to mustard - a special condiment to the Jaques family. The cost & demand curves for the mustard museum are shown at right. Currently, the main Marginal Cost source of museum income is from the price charged for museum 3FOR 3 3 PRICE COST admission but the museum directors are trying to decide what to do Average Total Cost with the admission price. They have come to you, the young economist, for help. Demand Q, Q, 0, 910, Q. Q% ATTENDANCE THEW JAQUES Marginal Revenue a) Using the labels that are provided in the graph above right, identify the price and quantity combinations that achieve the following museum objectives: i) where the mustard museum maximizes its total revenue. Explain. ii} where the mustard museum maximizes its profit. Explain. iil } Where the museum maximizes the sum of the consumer and producer surpluses iv ) Where attendance at the museum would be maximized, so long as the museum breaks even v) Where the museum would achieve allo cative efficiency b) When the attendance at the museum is 26, is the demand price elastic, inelastic, or unit elastic at that quantity? c) Assume that the price is set at 2 , what are the current levels of, i) Economic profit - positive, negative or zero ii} Accounting profit - positive, negative or zero